In the first week of May, $38.9 million was raised on seven deals. Over the last three months, four sectors, Media, Ad Network, Video, and Social Network, have seen the most activity, bringing in a combined $209 million on 25 transactions. Overall, capital market activity has trended downwards on the back of a declining economy and lower valuations. With any sustainable certainty and stability in the public markets, we would expect to see activity pick up as more institutions participate in private placements. Seven companies raised $38.9 million in the first week of May. EveryZing, a company in the video search sector, raised $8.3 million, followed by Gist at $6.8 million. All transactions except one (Resonate Networks) were greater than or equal to $5 million. The companies in our universe had mixed stock price performances over the past week (for stocks with prices greater than $1) (Figure 6), with 22 companies showing positive returns on the week. Tree.com (TREE-NASDAQ) led the group with a 27.5% return, while Beyond Commerce, Inc. (BYOC-OTCBB) had the worst return, dropping 21.8% in the week.
This email and any files transmitted with it are privileged, confidential, subject to copyright and intended solely for the use of the individual or entity to whom they are addressed. Views expressed are those of the user and not necessarily this Firm or its subsidiaries. Any unauthorized use, copying, review or disclosure is prohibited. Please notify the sender immediately if you have received this communication in error. Please note that this Firm, nor any of it's employees accept trade instructions via email. If trade instructions are received via email, they will not be acted upon. Thank you for your assistance and co-operation. Member CIPF.
Ce courrier électronique et toutes les pièces jointes transmises sont privés, confidentiels et assujettis aux droits d'auteur et sont conçus pour l'emploi exclusif de l'individu ou de l'entité destinataire. Les opinions exprimées sont celles de l'utilisateur et ne sont pas nécessairement celles de cette firme ou ses filiales. Il est interdit de diffuser, distribuer, réviser ou divulguer ce courrier électronique illégalement. Si ce message vous avez reçu ce communiqué par erreur, veuillez aviser l'expéditeur immédiatement. Veuillez noter que ni cette firme , ni ses employés ne peuvent accepter des instructions de transactions envoyées par courrier électronique. De telles instructions ne seront pas suivies ou exécutées si elles sont reçues par courrier électronique. Nous vous remercions pour votre aide et pour votre coopération. Membre du FCPE.
LATTER HALF OF 2009: FORGING FORWARD
DEAL VALUE ON PACE TO MEET NOVEMBER LEVEL
December starts at strong pace: Total transaction value in the Web 2.0 universe for the first week of December is $68.8 million. The number of financings stands at seven, averaging $9.8 million each. In comparison, total capital raised in November was $203.4 million, averaging $11.3 million (18 deals); October was $171.3 million, averaging $6.3 million (27 deals); and September was $232.8 million, averaging $9.0 million (26 deals).
Broad-based sector financing: Video, Gaming, Advertising, Collaboration, and Analytics experienced the most financing activity among our Web 2.0 sector categories in the past three months by number of transactions (six each). Social Networks remain strong with five deals in the past quarter. Infrastructure and Search round out the top three positions at four deals each over the past three months. The $400 million acquisition of Playfish skews the Virtual Worlds segment to the highest total.
Market pull-back abates – universe split between risers and decliners: Twenty-five companies in our universe had positive stock price performances over the past week (for stocks with prices greater than $1), while 22 companies showed negative 1-week returns.
April on track to be record month?: Total transaction value in the Web 2.0 universe April-to-date is $726.1 million. The number of financings stands at 40 averaging $18.2 million each. Note that this includes the $300 million investment in DST by Tencent. Even excluding this transaction, the average is $15.2 million. In comparison, total capital raised in March was $168.1 million, averaging $5.4 million over 31 deals. The highest monthly total in our Web 2.0 financing database was April 2008 with a total of $765.5 million raised in 47 transactions.
Deal round-up for April: The large deal highlights for the month include:
§
•Tencent invested $300mm in DST (investor in Facebook, Zynga, Groupon).
DST invested $135mm in social-shopping service Groupon.
Salesforce.com acquired crowd-sourced personal contact service, Jigsaw, for $142 mm.
•Warner Bros. acquired gaming company, Turbine, for $160 mm.
•Ankeena Networks, media infrastructure solution provider was acquired by Juniper for $100mm.
Bullish week for Web 2.0: Sixty-nine percent of the companies in our universe had increased or flat market caps over the past week, sixty-nine percent had increased EV/Revenue multiples, 75% had increased or flat EV/EBITDA multiples and 73% had increased or flat P/E mutliples .
Web 2.0 Weekly - June 22, 2010: "AOL Sells Bebo for Massive Loss"David Shore
Deals (M&A, Finance)
AOL is reported to have sold Bebo, the UK-based social network it bought just two years ago for $850 mm, to private equity firm Criterion Partners for under $10 mm. Based on our calculations, AOL paid the equivalent of $38 per Unique Visitor (UV) for Bebo, and sold it for under $1 per UV.
Positive price performance
The Web 2.0 public company universe rose again this week, with 60% of companies seeing their market cap rise vs. 33% falling and 7% flat.
Web 2.0 Weekly - July 20, 2010: "DST Cashing Up"David Shore
Large deals drive July financing to near record levels: With another huge financing (DST - see below) July financing is near record monthly levels. Total raised month-to-date is $742.6 million over 29 deals - averaging $25.6 million each. Excluding the Zynga ($100 million) and DST ($388 million) deals, the average deal size is $9.4 million. In comparison, total capital raised in July 2009 was $209.0 million, averaging $5.2 million over 40 deals. The monthly median total is ~$280 million with a median deal size of $8.1 million.
Deals (M&A, Finance)
Naspers, a South African media and print conglomerate, invested $388 mm in Digital Sky Technologies, the Russian digital media holding company with significant stakes in Facebook, Groupon, Mail.ru, and Zynga.
The next biggest raise of the week was Australian enterprise software developer, Atlassian, receiving $60 mm in Series A funds from Accel Partners.
Social Commerce continues to garner attention – this week BlueSwarm ($0.8 mm angel round) and Shopkick ($15 mm Series B round) raised money.
Another $31 mm in venture funds found their way to Advertising-related start-ups, including Israel-based Adsmarket ($17 mm), as well as a pair of India-based companies – Komli Media ($6 mm) and InMobi ($8 mm).
Price performance split
The Web 2.0 public company universe was split this week, with 48% of companies seeing their market cap fall vs. 43% rising and 9% flat.
In the first week of May, $38.9 million was raised on seven deals. Over the last three months, four sectors, Media, Ad Network, Video, and Social Network, have seen the most activity, bringing in a combined $209 million on 25 transactions. Overall, capital market activity has trended downwards on the back of a declining economy and lower valuations. With any sustainable certainty and stability in the public markets, we would expect to see activity pick up as more institutions participate in private placements. Seven companies raised $38.9 million in the first week of May. EveryZing, a company in the video search sector, raised $8.3 million, followed by Gist at $6.8 million. All transactions except one (Resonate Networks) were greater than or equal to $5 million. The companies in our universe had mixed stock price performances over the past week (for stocks with prices greater than $1) (Figure 6), with 22 companies showing positive returns on the week. Tree.com (TREE-NASDAQ) led the group with a 27.5% return, while Beyond Commerce, Inc. (BYOC-OTCBB) had the worst return, dropping 21.8% in the week.
This email and any files transmitted with it are privileged, confidential, subject to copyright and intended solely for the use of the individual or entity to whom they are addressed. Views expressed are those of the user and not necessarily this Firm or its subsidiaries. Any unauthorized use, copying, review or disclosure is prohibited. Please notify the sender immediately if you have received this communication in error. Please note that this Firm, nor any of it's employees accept trade instructions via email. If trade instructions are received via email, they will not be acted upon. Thank you for your assistance and co-operation. Member CIPF.
Ce courrier électronique et toutes les pièces jointes transmises sont privés, confidentiels et assujettis aux droits d'auteur et sont conçus pour l'emploi exclusif de l'individu ou de l'entité destinataire. Les opinions exprimées sont celles de l'utilisateur et ne sont pas nécessairement celles de cette firme ou ses filiales. Il est interdit de diffuser, distribuer, réviser ou divulguer ce courrier électronique illégalement. Si ce message vous avez reçu ce communiqué par erreur, veuillez aviser l'expéditeur immédiatement. Veuillez noter que ni cette firme , ni ses employés ne peuvent accepter des instructions de transactions envoyées par courrier électronique. De telles instructions ne seront pas suivies ou exécutées si elles sont reçues par courrier électronique. Nous vous remercions pour votre aide et pour votre coopération. Membre du FCPE.
LATTER HALF OF 2009: FORGING FORWARD
DEAL VALUE ON PACE TO MEET NOVEMBER LEVEL
December starts at strong pace: Total transaction value in the Web 2.0 universe for the first week of December is $68.8 million. The number of financings stands at seven, averaging $9.8 million each. In comparison, total capital raised in November was $203.4 million, averaging $11.3 million (18 deals); October was $171.3 million, averaging $6.3 million (27 deals); and September was $232.8 million, averaging $9.0 million (26 deals).
Broad-based sector financing: Video, Gaming, Advertising, Collaboration, and Analytics experienced the most financing activity among our Web 2.0 sector categories in the past three months by number of transactions (six each). Social Networks remain strong with five deals in the past quarter. Infrastructure and Search round out the top three positions at four deals each over the past three months. The $400 million acquisition of Playfish skews the Virtual Worlds segment to the highest total.
Market pull-back abates – universe split between risers and decliners: Twenty-five companies in our universe had positive stock price performances over the past week (for stocks with prices greater than $1), while 22 companies showed negative 1-week returns.
April on track to be record month?: Total transaction value in the Web 2.0 universe April-to-date is $726.1 million. The number of financings stands at 40 averaging $18.2 million each. Note that this includes the $300 million investment in DST by Tencent. Even excluding this transaction, the average is $15.2 million. In comparison, total capital raised in March was $168.1 million, averaging $5.4 million over 31 deals. The highest monthly total in our Web 2.0 financing database was April 2008 with a total of $765.5 million raised in 47 transactions.
Deal round-up for April: The large deal highlights for the month include:
§
•Tencent invested $300mm in DST (investor in Facebook, Zynga, Groupon).
DST invested $135mm in social-shopping service Groupon.
Salesforce.com acquired crowd-sourced personal contact service, Jigsaw, for $142 mm.
•Warner Bros. acquired gaming company, Turbine, for $160 mm.
•Ankeena Networks, media infrastructure solution provider was acquired by Juniper for $100mm.
Bullish week for Web 2.0: Sixty-nine percent of the companies in our universe had increased or flat market caps over the past week, sixty-nine percent had increased EV/Revenue multiples, 75% had increased or flat EV/EBITDA multiples and 73% had increased or flat P/E mutliples .
Web 2.0 Weekly - June 22, 2010: "AOL Sells Bebo for Massive Loss"David Shore
Deals (M&A, Finance)
AOL is reported to have sold Bebo, the UK-based social network it bought just two years ago for $850 mm, to private equity firm Criterion Partners for under $10 mm. Based on our calculations, AOL paid the equivalent of $38 per Unique Visitor (UV) for Bebo, and sold it for under $1 per UV.
Positive price performance
The Web 2.0 public company universe rose again this week, with 60% of companies seeing their market cap rise vs. 33% falling and 7% flat.
Web 2.0 Weekly - July 20, 2010: "DST Cashing Up"David Shore
Large deals drive July financing to near record levels: With another huge financing (DST - see below) July financing is near record monthly levels. Total raised month-to-date is $742.6 million over 29 deals - averaging $25.6 million each. Excluding the Zynga ($100 million) and DST ($388 million) deals, the average deal size is $9.4 million. In comparison, total capital raised in July 2009 was $209.0 million, averaging $5.2 million over 40 deals. The monthly median total is ~$280 million with a median deal size of $8.1 million.
Deals (M&A, Finance)
Naspers, a South African media and print conglomerate, invested $388 mm in Digital Sky Technologies, the Russian digital media holding company with significant stakes in Facebook, Groupon, Mail.ru, and Zynga.
The next biggest raise of the week was Australian enterprise software developer, Atlassian, receiving $60 mm in Series A funds from Accel Partners.
Social Commerce continues to garner attention – this week BlueSwarm ($0.8 mm angel round) and Shopkick ($15 mm Series B round) raised money.
Another $31 mm in venture funds found their way to Advertising-related start-ups, including Israel-based Adsmarket ($17 mm), as well as a pair of India-based companies – Komli Media ($6 mm) and InMobi ($8 mm).
Price performance split
The Web 2.0 public company universe was split this week, with 48% of companies seeing their market cap fall vs. 43% rising and 9% flat.
Web 2.0 Weekly - July 27, 2010: "July Financings - Approaching High for 2010"David Shore
Deals (M&A, Finance)
Jive Software received the biggest investment of the week at $30 mm, bringing its total capital raised to date to $57 mm – the company brings social network-like functions to the realm of enterprise collaboration.
Advertising networks continue to receive the most attention among sectors we track – this week, $24.6 mm in financings were announced, including sports-related ad network Sportgenic (acquired by Glam Media for $12 mm), and TurnHere ($12.6mm in Series B funds).
Rumour alert – we continue to hear more frequent buzz concerning the potential acquisition of social gaming developer Playdom by Disney.
Synchronica (AIM:SYNC) intends to acquire iseemedia (TSXV:IEE) for C$8.8 mm in stock – both companies are engaged in mobile communications development, such as email-to-SMS.
Price performance turns positive
The Web 2.0 public company universe was positive this week, with 54% of companies seeing their market cap rise vs. 34% falling and 12% flat.
Semantic Web & Web 3.0 – Eine Einführungbasis06 AG
Einführung in das Thema ohne Buzzwords und Technospeak aber mit nachvollziehbaren Beispielen und konkreten Tipps anlässlich der Eventreihe Reise ins Web
The digital marketplace is an exceptional environment to access the voice of your customers, your best assets. By listening and communicating to them, you can achieve greater customer satisfaction, customer acquisition, and ultimately business growth & revenue. You may have seen this in individual digital silos or for niche campaigns but what about the long term branding, engagement and customer commitment benefits?
dgm will outline key avenues you can use to effectively listen to those customers who are already speaking to you and understand how you can best harness the dialogue that’s already occurring through your site and via social media activity.
Learn which tools can accelerate your connectivity with customers and sort the insights from the noise. Learn how to really read the data that’s already at your fingertips and translate that into successful strategies for business development and growth.
dgm will illustrate a recent Dell case study which demonstrates the positive outcomes that can be achieved by listening to your customers and leveraging their voice.
Chris Garner, Regional Account Director – Dell, dgm
Last week we saw a number of companies in the media and Web 2.0 sector reporting earnings, but none was more surprising than Cyberplex. This company, operating in the ad network space, continued to surprise investors both on the earnings front and capital market activity. In posting approximately 300% growth in revenues Y/Y (see figure below), the company has demonstrated the merit of its business model and has returned to the equity markets for C$15 million to fuel the next phase of its growth.
Month-to-date financings in May totaled $84.3 million and benefited from a financing from Cyberplex for $12.9 million. So far, there have been 14 financings in May with seven deals greater than $5 million and only three less than $5 million. Except for Cyberplex, no deals were greater than $10 million, with the capital raise by Imeem and EveryZing close behind at $8.8 million and $8.3 million, respectively. The companies in our universe had mixed stock price performances over the past week (for stocks with prices greater than $1) (Figure 6), with 24 companies showing positive returns on the week. Ynk Korea, Inc. (A023770-KOSE) led the group with a 30.9% return, while Mixi , Inc. (2121-TSE) had the worst return, dropping 9.2% in the week.
Financing activity continued to ramp up in April after a slow start to the month. Total financings (month-to-date) jumped to $92.2 million (this week) from $66.3 million (last week) – a significant +40%. As of last week, a total of 12 deals closed, with a $16 million raise by GOOM Radio being a major contributor. A total of four deals greater than $10 million each helped the overall statistics. Social Networking company DigitalTown Inc. (DGTW-OTCBB) was the top price performer for the week, returning 20%, closely followed by Kingsoft Co. Ltd. (3888-EHK) at 17.6%. The9 Ltd. (NCTY-NasdaqGS) had the worst return, dropping 27.6% in the week after news of its losing the license to operate World of Warcraft in China. Of the 34 companies (with stock price greater than $1), 10 companies on our list had price performances greater than +10%. Only one company returned more than
20%.
The month of April saw 21 financings totalling $144.5 million, with not enough transactions (volume and size) to boost levels above any month in 2009. In perspective, February and March closed off at $185.5 mm and $159.5 million, respectively. On a much more positive note, we saw the announcement from Disney taking a significant position in Hulu - a strategic move in Web-TV distribution. This brings together three of the biggest broadcast and cable network owners under the same banner. Additionally, we would like to highlight that from a sector perspective, video saw the most amount of capital raised at $75.4 million (Figure 4) over a 3-month period. Is this an indication of things to come? Most of the companies in our universe had positive stock price performances over the past week (for stocks with prices greater than $1) (Figure 12), with 19 companies showing positive returns on the week. Tree.com (TREE-NASDAQ) led the group with a 62.3% return, while Beyond Commerce Inc. (BYOC-OTCBB) had the worst return, dropping 10.7% in the week. Four companies had better than 20% price increases last week.
April 2010 a record month for Web 2.0 Financing: Total transaction value (excluding M&A) in the Web 2.0 universe for April was $808.2 million - the highest monthly total we have recorded. The number of financings was also a record, at 48, averaging $16.8 million each. Note that this includes the $300 million investment in DST by Tencent. Excluding this transaction, the average is $9.6 million. In comparison, total capital raised in March was $168.1 million, averaging $5.4 million over 31 deals.
Deal round-up for April: The large deal highlights for the month include:
Tencent invested $300mm in DST (investor in Facebook, Zynga, Groupon).
Apple acquired Siri, a mobile local search developer for a rumoured $225 mm.
DST acquired ICQ, the instant messaging company, for $187.5 mm.
Warner Bros. acquired gaming company, Turbine, for $160 mm.
DST invested $135mm in social-shopping service Groupon.
Salesforce.com acquired crowd-sourced personal contact service, Jigsaw, for $142 mm.
Ankeena Networks, media infrastructure solution provider was acquired by Juniper for $100mm.
Bearish week: Price performance was largely negative in our Web 2.0 universe, with prices dropping for over 60% of the companies.
Web 2.0 Weekly - May 26, 2010: "Market Declines Impact Web 2.0 Universe Valua...David Shore
May tracking to average monthly levels: After a slow start to the month, financing in the Web 2.0 universe has rebounded and is now on track with prior months. Total transaction value (excluding M&A) in the Web 2.0 universe for May (month-to-date) is $189.9 million from 30 transactions, averaging $6.3 million each. In comparison, total capital raised in May 2009 was $375.0 million, averaging $12.5 million over 30 deals. Excluding May 09, Dec 09 and Apr 10, the average monthly total is $212 million.
Deals (M&A, Finance)
Cyberplex (TSX:CX) announced plans to acquire Tsavo Media for US$75.6 mm, partially funded through a C$30 mm bought deal financing at $0.55.
Online gaming company Gaikai, raised $10.0 mm in Series B financing.
Blip.TV, online TV provider, raised $10.1 mm in Series C financing.
Financial Results/Guidance
Netease.com (NasdaqGS:NTES, online gaming) reported Q1/F10 revenue of RMB 1.2 bn (vs. RMB 781.7 mm in the same period last year).
Snap Interactive (OTCBB:STVI, online dating) reported Q1/F10 revenue growth of 20% to $0.927 mm from $0.768 mm.
Bearish week again: Price performance was largely negative in our Web 2.0 universe. This impacted valuation multiples, which fell for ~80% of the companies in our universe.
Web 2.0 Weekly - July 27, 2010: "July Financings - Approaching High for 2010"David Shore
Deals (M&A, Finance)
Jive Software received the biggest investment of the week at $30 mm, bringing its total capital raised to date to $57 mm – the company brings social network-like functions to the realm of enterprise collaboration.
Advertising networks continue to receive the most attention among sectors we track – this week, $24.6 mm in financings were announced, including sports-related ad network Sportgenic (acquired by Glam Media for $12 mm), and TurnHere ($12.6mm in Series B funds).
Rumour alert – we continue to hear more frequent buzz concerning the potential acquisition of social gaming developer Playdom by Disney.
Synchronica (AIM:SYNC) intends to acquire iseemedia (TSXV:IEE) for C$8.8 mm in stock – both companies are engaged in mobile communications development, such as email-to-SMS.
Price performance turns positive
The Web 2.0 public company universe was positive this week, with 54% of companies seeing their market cap rise vs. 34% falling and 12% flat.
Semantic Web & Web 3.0 – Eine Einführungbasis06 AG
Einführung in das Thema ohne Buzzwords und Technospeak aber mit nachvollziehbaren Beispielen und konkreten Tipps anlässlich der Eventreihe Reise ins Web
The digital marketplace is an exceptional environment to access the voice of your customers, your best assets. By listening and communicating to them, you can achieve greater customer satisfaction, customer acquisition, and ultimately business growth & revenue. You may have seen this in individual digital silos or for niche campaigns but what about the long term branding, engagement and customer commitment benefits?
dgm will outline key avenues you can use to effectively listen to those customers who are already speaking to you and understand how you can best harness the dialogue that’s already occurring through your site and via social media activity.
Learn which tools can accelerate your connectivity with customers and sort the insights from the noise. Learn how to really read the data that’s already at your fingertips and translate that into successful strategies for business development and growth.
dgm will illustrate a recent Dell case study which demonstrates the positive outcomes that can be achieved by listening to your customers and leveraging their voice.
Chris Garner, Regional Account Director – Dell, dgm
Last week we saw a number of companies in the media and Web 2.0 sector reporting earnings, but none was more surprising than Cyberplex. This company, operating in the ad network space, continued to surprise investors both on the earnings front and capital market activity. In posting approximately 300% growth in revenues Y/Y (see figure below), the company has demonstrated the merit of its business model and has returned to the equity markets for C$15 million to fuel the next phase of its growth.
Month-to-date financings in May totaled $84.3 million and benefited from a financing from Cyberplex for $12.9 million. So far, there have been 14 financings in May with seven deals greater than $5 million and only three less than $5 million. Except for Cyberplex, no deals were greater than $10 million, with the capital raise by Imeem and EveryZing close behind at $8.8 million and $8.3 million, respectively. The companies in our universe had mixed stock price performances over the past week (for stocks with prices greater than $1) (Figure 6), with 24 companies showing positive returns on the week. Ynk Korea, Inc. (A023770-KOSE) led the group with a 30.9% return, while Mixi , Inc. (2121-TSE) had the worst return, dropping 9.2% in the week.
Financing activity continued to ramp up in April after a slow start to the month. Total financings (month-to-date) jumped to $92.2 million (this week) from $66.3 million (last week) – a significant +40%. As of last week, a total of 12 deals closed, with a $16 million raise by GOOM Radio being a major contributor. A total of four deals greater than $10 million each helped the overall statistics. Social Networking company DigitalTown Inc. (DGTW-OTCBB) was the top price performer for the week, returning 20%, closely followed by Kingsoft Co. Ltd. (3888-EHK) at 17.6%. The9 Ltd. (NCTY-NasdaqGS) had the worst return, dropping 27.6% in the week after news of its losing the license to operate World of Warcraft in China. Of the 34 companies (with stock price greater than $1), 10 companies on our list had price performances greater than +10%. Only one company returned more than
20%.
The month of April saw 21 financings totalling $144.5 million, with not enough transactions (volume and size) to boost levels above any month in 2009. In perspective, February and March closed off at $185.5 mm and $159.5 million, respectively. On a much more positive note, we saw the announcement from Disney taking a significant position in Hulu - a strategic move in Web-TV distribution. This brings together three of the biggest broadcast and cable network owners under the same banner. Additionally, we would like to highlight that from a sector perspective, video saw the most amount of capital raised at $75.4 million (Figure 4) over a 3-month period. Is this an indication of things to come? Most of the companies in our universe had positive stock price performances over the past week (for stocks with prices greater than $1) (Figure 12), with 19 companies showing positive returns on the week. Tree.com (TREE-NASDAQ) led the group with a 62.3% return, while Beyond Commerce Inc. (BYOC-OTCBB) had the worst return, dropping 10.7% in the week. Four companies had better than 20% price increases last week.
April 2010 a record month for Web 2.0 Financing: Total transaction value (excluding M&A) in the Web 2.0 universe for April was $808.2 million - the highest monthly total we have recorded. The number of financings was also a record, at 48, averaging $16.8 million each. Note that this includes the $300 million investment in DST by Tencent. Excluding this transaction, the average is $9.6 million. In comparison, total capital raised in March was $168.1 million, averaging $5.4 million over 31 deals.
Deal round-up for April: The large deal highlights for the month include:
Tencent invested $300mm in DST (investor in Facebook, Zynga, Groupon).
Apple acquired Siri, a mobile local search developer for a rumoured $225 mm.
DST acquired ICQ, the instant messaging company, for $187.5 mm.
Warner Bros. acquired gaming company, Turbine, for $160 mm.
DST invested $135mm in social-shopping service Groupon.
Salesforce.com acquired crowd-sourced personal contact service, Jigsaw, for $142 mm.
Ankeena Networks, media infrastructure solution provider was acquired by Juniper for $100mm.
Bearish week: Price performance was largely negative in our Web 2.0 universe, with prices dropping for over 60% of the companies.
Web 2.0 Weekly - May 26, 2010: "Market Declines Impact Web 2.0 Universe Valua...David Shore
May tracking to average monthly levels: After a slow start to the month, financing in the Web 2.0 universe has rebounded and is now on track with prior months. Total transaction value (excluding M&A) in the Web 2.0 universe for May (month-to-date) is $189.9 million from 30 transactions, averaging $6.3 million each. In comparison, total capital raised in May 2009 was $375.0 million, averaging $12.5 million over 30 deals. Excluding May 09, Dec 09 and Apr 10, the average monthly total is $212 million.
Deals (M&A, Finance)
Cyberplex (TSX:CX) announced plans to acquire Tsavo Media for US$75.6 mm, partially funded through a C$30 mm bought deal financing at $0.55.
Online gaming company Gaikai, raised $10.0 mm in Series B financing.
Blip.TV, online TV provider, raised $10.1 mm in Series C financing.
Financial Results/Guidance
Netease.com (NasdaqGS:NTES, online gaming) reported Q1/F10 revenue of RMB 1.2 bn (vs. RMB 781.7 mm in the same period last year).
Snap Interactive (OTCBB:STVI, online dating) reported Q1/F10 revenue growth of 20% to $0.927 mm from $0.768 mm.
Bearish week again: Price performance was largely negative in our Web 2.0 universe. This impacted valuation multiples, which fell for ~80% of the companies in our universe.
Summer financing doldrums: After a very strong June (with total transaction value (excluding M&A) of $542.8 million from 66 transactions, averaging $8.4 million each), July has started very slowly with only one small financing announced. However, we have seen some large M&A transactions (see below). In comparison, total capital raised in July 2009 was $206.2 million, averaging $5.4 million over 38 deals. Excluding Dec 09 and Apr 10, the average monthly total is ~$270 million.
Deals (M&A, Finance)
Google, acquired ITA Software, search provider for the travel industry for $700 mm.
infoGROUP, provider of business and consumer databases for sales leads, mailing lists, direct marketing, database marketing, e-mail marketing, and marketing research solutions, was taken private for $645 mm by CCMP Capital Advisers.
GroupSpaces, a provider of web-based tools for sports clubs, university societies, organizations, and groups of friends or coworkers, raised $1.3 mm.
Domain based online advertising services provider, OCTANE360, was acquired by Local.com for $10.9 mm.
Negative price performance
The Web 2.0 public company universe fell again this week, with 61% of companies seeing their market cap fall vs. 27% rising and 12% flat.
Web 2.0 Weekly - Aug. 4, 2010: "Playdom is going to Disney World"David Shore
Deals (M&A, Finance) – Disney Gets In To Social/Mobile Video Games
Disney acquired social and mobile game developer, Playdom, for $563 mm in upfront consideration and the potential for $200 mm in further earn-out based consideration. Disney management notes that the company continues to be on the acquisition war path.
The largest deals in the week involved (wait for it…) the advertising sector, with $15 mm in follow-on financings to eXelate and AdMeld, and $8 mm to BuzzLogic.
Four different social network/media companies received financing in the week, including, Hot Potato (acquired for $10 mm by Facebook), PlacePop ($1.4 mm round), Rapportive ($1 mm seed round), and dating site, Triangulate ($0.75 seed round).
Price Performance - Web 2.0 Valuation Reverse Course and Head Upward
The Web 2.0 public company universe was positive this week with 47% of stocks rising, 46% falling, and 7% flat.
Slow start in May after record April: Total transaction value (excluding M&A) in the Web 2.0 universe for April was $813.5 million - the highest monthly total we have recorded. The number of financings was also a record, at 49, averaging $16.6 million each. Note that this includes the $300 million investment in DST by Tencent. Excluding this transaction, the average is $10.7 million. May 2010, in contrast, has started slowly, with only $37.4 million in financing announced thus far, averaging just $3.4 million across 11 deals. In comparison, total capital raised in May 2009 was $375.0 million, averaging $12.5 million over 30 deals.
Deal round-up for May: The large deal highlights for the month include:
Fluid Music (TSX:FMN, digital music distributor) will acquire Mood Media (provider of sensorial marketing solutions) for €160 mm.
Lithium is purchasing analytics developer, Scout Labs, for $20 mm.
Fatfoogoo (purveyor of virtual goods) is being acquired by Digital River for $10 mm.
Groupalia, the Spanish answer to online group discount retailers, Groupon and LivingSocial, raised $2.5 mm in a Series A financing – the online group discounters have been raising money quickly (DST invested $135 mm in Groupon in April) with a total of $222 mm in funding coming to just these three players thus far.
Bearish week again: Price performance was largely negative in our Web 2.0 universe, with prices dropping for over 70% of the companies.
Web 2.0 Weekly - Aug. 10, 2010: "Consolidation by Google"David Shore
Deals (M&A, Finance) – Consolidation by Google
Google confirmed or announced two acquisitions during the week, including Jambool
($70 mm) involved in virtual goods monetization processes, and widget market, Slide
($182 mm).
In other acquisition-related news, Forbes sold investment media website Investopedia to ValueClick for $42 mm. Zynga acquired Japanese mobile app and game developer,
Unoh, for an estimated $29 mm. Finally, dubbed “the Spanish Facebook,” social
networking site, Tuenti, was acquired by Telefonica in a $99 mm deal.
The largest financing (aside from the aforementioned M&A activity) involved “the
Chinese Youtube,” Tudou, raising $50 mm in Series E funds.
Price Performance
Distinctly negative price momentum, with 49% of stocks falling over the past week (after 48% of stocks declines last week, and 51% declined the week prior).
June financing well ahead of average: Financing in the Web 2.0 universe in June was the third highest month (over the past 12) with total transaction value (excluding M&A) of $459.6 million from 51 transactions, averaging $9.0 million each - led by the $147 million Zynga financing. In comparison, total capital raised in June 2009 was $226.3 million, averaging $4.5 million over 50 deals. Excluding Dec 09 and Apr 10, the average monthly total is ~$260 million.
Deals (M&A, Finance)
Alloy, a provider of news and commentary concerning New Media, was acquired by ZelnickMedia for $127 mm.
Facebook’s implied valuation rose to $24 bn as Elevation Partners purchased 5 mm shares of the company for $120 mm in the secondary market.
Danish Skype competitor, Vopium, received $16.5 mm in financing from Indian financier, Raghuvinder Kataria.
Social networking software developer based in France, Pearltrees, raised $1.6 mm.
PapayaMobile, mobile application software company based in China, raised $4 mm.
Two Israeli mobile developers received funding this week, including Perfecto Mobile ($4 mm) and Snaptu ($6 mm).
Negative price performance
The Web 2.0 public company universe fell this week, with 68% of companies seeing their market cap fall vs. 25% rising and 7% flat.
Social Computing In The Enterprise BarCampBuffalo Open DiscussionЅ. Νavpreet Jatana
Though we wouldn’t think twice about it, social computing has been around since the beginning of enterprise computing. Some examples of social software include: email, blogs, wikis, instant messaging & presence awareness, media sharing, social bookmarking & search, social networking, and web conferencing. The latest wave of social computing applications and standards are often dubbed Web 2.0 or Collaborative Software.
Intranet 2.0 - Integrating Enterprise 2.0 into your corporate intranetJames Dellow
Enterprise 2.0 opportunities and challenges; The technology building blocks: Blogs, RSS,
tags, search and wikis; Implementation approaches: Nature or nurture? Pulling it all together and getting started.
This presentation was made as a workshop at Intranet '07 on 20th September, 2007 in Sydney, Australia. Note: This version of the presentation pack contains only key slides and omits additional reading materials provided.
Google/Zynga deal drives July financing results: After starting very slowly (just one deal announced in the prior week) July financing increased substantially as a result of the Google/Zynga financing ($100-200 million). Total raised month-to-date is $158.8 million over 12 deals - averaging $13.2 million each. In comparison, total capital raised in July 2009 was $206.5 million, averaging $5.3 million over 39 deals. Excluding Dec 09 and Apr 10, the average monthly total is ~$280 million.
Deals (M&A, Finance)
Google invested a rumoured $100-$200 mm in social game developer, Zynga, bringing that company’s total funding to almost $500 mm (assuming the lower end of the range).
The Gaming sector remains hot – along with Google’s investment in Zynga, The9 Ltd. (Chinese online game developer and operator) invested $5 mm in Delaware-based Aurora Feint (focused on gaming for the mobile space).
A triad of financings in the Social Commerce space this week, including Beyond the Rack ($12 mm), ThredUP ($1.7 mm), and BuyWithMe ($16 mm in a Series B financing).
Sysomos, Canadian social media monitoring firm, was acquired by MarketWire for between $25 mm and $35 mm.
Price performance turns positive
The Web 2.0 public company universe rose this week, with 58% of companies seeing their market cap rise vs. 32% rising and 10% flat.
10 01 05 Web 2.0 Weekly Special EditionDavid Shore
TOP FIVE DEALS OF 2009
The Top Five: Despite over 400 transactions in 2009, it wasn’t hard choosing our Top Five transactions for 2009 (with a little bit of massaging). Our Top Five transactions are: Facebook’s $200 million D round, Twitter’s $100 million E round, the $2.25 billion acquisition of Skype, the almost $1 billion in financing/M&A for Social Gaming companies (including Zynga, Playdom and Playfish), and the incredible per unique visitor value ascribed in the financing for location-based social networking company Gowalla.
• Facebook raises $200 million D round: In May 2009, Facebook announced a new financing round – raising $200 million from Digital Sky Technologies. The transaction gave Digital Sky a 1.96% stake, valuing Facebook at $10 billion. This financing brought the company’s total to $678.2 million. This was also the largest financing we recorded in 2009.
• Twitter raises $100 million E round: The third largest financing round in 2009 belonged to Twitter – a $100 million Series E in September 2009. The financing reportedly valued Twitter at $1 billion – a remarkable valuation for a company that has not yet formalized a revenue model! More recently, it has been reported that Twitter was actually profitable in 2009 due to the $25 million in search deals it signed in October with Google and Microsoft.
• Skype is acquired for $2.025 billion: By far the largest overall transaction in our database in 2009 was the acquisition of a majority position (65%) in Skype from eBay for $2.025 billion – announced in September 2009. The transaction was completed in November 2009. eBay had purchased Skype for $4.0 billion in 2005.
• Social Gaming financing activity reaches ~$1 billion (Zynga, Playfish, Playdom, etc.): Perhaps the hottest sector overall in 2009 was Social Gaming. This segment of the Web 2.0 market had the third highest number of deals (39) and generated almost $1 billion in financing/M&A activity – the second highest total overall (Figure 1). Three transactions in particular stand out in the social gaming space – the $400 million acquisition of Playfish (by Electronic Arts, November 2009), the $180 million financing of Zynga (Series C, December 2009, by Digital Sky), and the $43 million first round of financing for Playdom (New Enterprise lead, November 2009, Series A). There has been much speculation as to how the larger social gaming companies will proceed, with potential IPO or further strategic M&A most likely.
• Hottest new sector? Location-based social networks (Foursquare, Gowalla, etc.). Unique visitor value skyrockets: Financing activity for location-based social networks really heated up late in 2009. While the total financing raised in 2009 was quite small (~$15 million), the hype surrounding location-based SNS companies was substantial. In our opinion, this was highlighted by the $8.4 million December Series B financing for Gowalla. The reported valuation of $28.4 million implies a value of $568 for each of its 50,000 users (Figure 2). That compares to a $40 per user value we estimate for the Foursquare financing in September.
New royalty agreement for webcasting & copyright firms: SoundExchange, a nonprofit royalty collecting organization associated with the Recording Industry Association of America (RIAA) agreed this past week to a new deal regarding royalty rates for webcasting. Under the new agreement, large commercial webcasters will pay up to 25% of their revenue to copyright holders – well below the 70% that could have been imposed under an earlier deal. While the deal was initially agreed to by three smaller Internet radio webcasters, Pandora Media, the third largest radio site (according to Alexa), also indicated it would sign on to the agreement.
Online Media companies lead financing: Two online media companies – Pandora (Internet Radio) and QuickPlay (Mobile Video) have secured the largest financing transactions thus far in July ($35 million and $12 million respectively). Total capital raised so far in July is $66.1 million through eight transactions, averaging $8.3 million per transaction. June closed with $180 million in financing on 36 transactions. The averages for the months of May (excluding the Facebook transaction) and June were $6.4 million and $4.7 million, respectively.
A weak price performance week: The companies in our universe had weak stock price performances over the past week (for stocks with prices greater than $1) (Figure 6), with 30 companies showing negative returns on the week. Gravity (NasdaqGM: GRVY) led the group with a 33% return, while GungHo (3765-OSE) had the worst return, dropping 26.4% in the week.
*Capital Market Activity: *The month of May closed with 20 financings
totalling $327.1 million led by the $200 million investment by Digital Sky
Technologies in Facebook. Excluding the Facebook transaction, May would have
been the lowest month in CY2009. The Facebook transaction aside, four
transactions (One Net Ent., Cyberplex, Peer39 and OpenX), were greater than
or equal to $10 million. The average value in May is $15.6 million (and $6.4
million excluding the Facebook transaction), greater than the average value
for April of $6.2 million on 21 financings. The March average was $6.5
million on 24 financings. If you are aware of any companies that have
recently raised money that are not on our list, please send me an email to
have them added to our database.
*Price Performance: *Most of the companies in our universe had positive
stock price performances over the past week (for stocks with prices greater
than $1) (Figure 12), with 29 companies showing positive returns on the
week. GameOn co. Ltd (3812-TSE) led the group with a 28.2% return, while
eolith Co. Ltd. (A041060-KOSE) had the worst return, dropping 13.7% in the
week.
Le nuove frontiere dell'AI nell'RPA con UiPath Autopilot™UiPathCommunity
In questo evento online gratuito, organizzato dalla Community Italiana di UiPath, potrai esplorare le nuove funzionalità di Autopilot, il tool che integra l'Intelligenza Artificiale nei processi di sviluppo e utilizzo delle Automazioni.
📕 Vedremo insieme alcuni esempi dell'utilizzo di Autopilot in diversi tool della Suite UiPath:
Autopilot per Studio Web
Autopilot per Studio
Autopilot per Apps
Clipboard AI
GenAI applicata alla Document Understanding
👨🏫👨💻 Speakers:
Stefano Negro, UiPath MVPx3, RPA Tech Lead @ BSP Consultant
Flavio Martinelli, UiPath MVP 2023, Technical Account Manager @UiPath
Andrei Tasca, RPA Solutions Team Lead @NTT Data
UiPath Test Automation using UiPath Test Suite series, part 4DianaGray10
Welcome to UiPath Test Automation using UiPath Test Suite series part 4. In this session, we will cover Test Manager overview along with SAP heatmap.
The UiPath Test Manager overview with SAP heatmap webinar offers a concise yet comprehensive exploration of the role of a Test Manager within SAP environments, coupled with the utilization of heatmaps for effective testing strategies.
Participants will gain insights into the responsibilities, challenges, and best practices associated with test management in SAP projects. Additionally, the webinar delves into the significance of heatmaps as a visual aid for identifying testing priorities, areas of risk, and resource allocation within SAP landscapes. Through this session, attendees can expect to enhance their understanding of test management principles while learning practical approaches to optimize testing processes in SAP environments using heatmap visualization techniques
What will you get from this session?
1. Insights into SAP testing best practices
2. Heatmap utilization for testing
3. Optimization of testing processes
4. Demo
Topics covered:
Execution from the test manager
Orchestrator execution result
Defect reporting
SAP heatmap example with demo
Speaker:
Deepak Rai, Automation Practice Lead, Boundaryless Group and UiPath MVP
Why You Should Replace Windows 11 with Nitrux Linux 3.5.0 for enhanced perfor...SOFTTECHHUB
The choice of an operating system plays a pivotal role in shaping our computing experience. For decades, Microsoft's Windows has dominated the market, offering a familiar and widely adopted platform for personal and professional use. However, as technological advancements continue to push the boundaries of innovation, alternative operating systems have emerged, challenging the status quo and offering users a fresh perspective on computing.
One such alternative that has garnered significant attention and acclaim is Nitrux Linux 3.5.0, a sleek, powerful, and user-friendly Linux distribution that promises to redefine the way we interact with our devices. With its focus on performance, security, and customization, Nitrux Linux presents a compelling case for those seeking to break free from the constraints of proprietary software and embrace the freedom and flexibility of open-source computing.
Welcome to the first live UiPath Community Day Dubai! Join us for this unique occasion to meet our local and global UiPath Community and leaders. You will get a full view of the MEA region's automation landscape and the AI Powered automation technology capabilities of UiPath. Also, hosted by our local partners Marc Ellis, you will enjoy a half-day packed with industry insights and automation peers networking.
📕 Curious on our agenda? Wait no more!
10:00 Welcome note - UiPath Community in Dubai
Lovely Sinha, UiPath Community Chapter Leader, UiPath MVPx3, Hyper-automation Consultant, First Abu Dhabi Bank
10:20 A UiPath cross-region MEA overview
Ashraf El Zarka, VP and Managing Director MEA, UiPath
10:35: Customer Success Journey
Deepthi Deepak, Head of Intelligent Automation CoE, First Abu Dhabi Bank
11:15 The UiPath approach to GenAI with our three principles: improve accuracy, supercharge productivity, and automate more
Boris Krumrey, Global VP, Automation Innovation, UiPath
12:15 To discover how Marc Ellis leverages tech-driven solutions in recruitment and managed services.
Brendan Lingam, Director of Sales and Business Development, Marc Ellis
Essentials of Automations: The Art of Triggers and Actions in FMESafe Software
In this second installment of our Essentials of Automations webinar series, we’ll explore the landscape of triggers and actions, guiding you through the nuances of authoring and adapting workspaces for seamless automations. Gain an understanding of the full spectrum of triggers and actions available in FME, empowering you to enhance your workspaces for efficient automation.
We’ll kick things off by showcasing the most commonly used event-based triggers, introducing you to various automation workflows like manual triggers, schedules, directory watchers, and more. Plus, see how these elements play out in real scenarios.
Whether you’re tweaking your current setup or building from the ground up, this session will arm you with the tools and insights needed to transform your FME usage into a powerhouse of productivity. Join us to discover effective strategies that simplify complex processes, enhancing your productivity and transforming your data management practices with FME. Let’s turn complexity into clarity and make your workspaces work wonders!
Alt. GDG Cloud Southlake #33: Boule & Rebala: Effective AppSec in SDLC using ...James Anderson
Effective Application Security in Software Delivery lifecycle using Deployment Firewall and DBOM
The modern software delivery process (or the CI/CD process) includes many tools, distributed teams, open-source code, and cloud platforms. Constant focus on speed to release software to market, along with the traditional slow and manual security checks has caused gaps in continuous security as an important piece in the software supply chain. Today organizations feel more susceptible to external and internal cyber threats due to the vast attack surface in their applications supply chain and the lack of end-to-end governance and risk management.
The software team must secure its software delivery process to avoid vulnerability and security breaches. This needs to be achieved with existing tool chains and without extensive rework of the delivery processes. This talk will present strategies and techniques for providing visibility into the true risk of the existing vulnerabilities, preventing the introduction of security issues in the software, resolving vulnerabilities in production environments quickly, and capturing the deployment bill of materials (DBOM).
Speakers:
Bob Boule
Robert Boule is a technology enthusiast with PASSION for technology and making things work along with a knack for helping others understand how things work. He comes with around 20 years of solution engineering experience in application security, software continuous delivery, and SaaS platforms. He is known for his dynamic presentations in CI/CD and application security integrated in software delivery lifecycle.
Gopinath Rebala
Gopinath Rebala is the CTO of OpsMx, where he has overall responsibility for the machine learning and data processing architectures for Secure Software Delivery. Gopi also has a strong connection with our customers, leading design and architecture for strategic implementations. Gopi is a frequent speaker and well-known leader in continuous delivery and integrating security into software delivery.
SAP Sapphire 2024 - ASUG301 building better apps with SAP Fiori.pdfPeter Spielvogel
Building better applications for business users with SAP Fiori.
• What is SAP Fiori and why it matters to you
• How a better user experience drives measurable business benefits
• How to get started with SAP Fiori today
• How SAP Fiori elements accelerates application development
• How SAP Build Code includes SAP Fiori tools and other generative artificial intelligence capabilities
• How SAP Fiori paves the way for using AI in SAP apps
Enhancing Performance with Globus and the Science DMZGlobus
ESnet has led the way in helping national facilities—and many other institutions in the research community—configure Science DMZs and troubleshoot network issues to maximize data transfer performance. In this talk we will present a summary of approaches and tips for getting the most out of your network infrastructure using Globus Connect Server.
GraphRAG is All You need? LLM & Knowledge GraphGuy Korland
Guy Korland, CEO and Co-founder of FalkorDB, will review two articles on the integration of language models with knowledge graphs.
1. Unifying Large Language Models and Knowledge Graphs: A Roadmap.
https://arxiv.org/abs/2306.08302
2. Microsoft Research's GraphRAG paper and a review paper on various uses of knowledge graphs:
https://www.microsoft.com/en-us/research/blog/graphrag-unlocking-llm-discovery-on-narrative-private-data/
Observability Concepts EVERY Developer Should Know -- DeveloperWeek Europe.pdfPaige Cruz
Monitoring and observability aren’t traditionally found in software curriculums and many of us cobble this knowledge together from whatever vendor or ecosystem we were first introduced to and whatever is a part of your current company’s observability stack.
While the dev and ops silo continues to crumble….many organizations still relegate monitoring & observability as the purview of ops, infra and SRE teams. This is a mistake - achieving a highly observable system requires collaboration up and down the stack.
I, a former op, would like to extend an invitation to all application developers to join the observability party will share these foundational concepts to build on:
Accelerate your Kubernetes clusters with Varnish CachingThijs Feryn
A presentation about the usage and availability of Varnish on Kubernetes. This talk explores the capabilities of Varnish caching and shows how to use the Varnish Helm chart to deploy it to Kubernetes.
This presentation was delivered at K8SUG Singapore. See https://feryn.eu/presentations/accelerate-your-kubernetes-clusters-with-varnish-caching-k8sug-singapore-28-2024 for more details.
Accelerate your Kubernetes clusters with Varnish Caching
09 02 03 Web 2.0 Weekly
1. SOFTWARE & SERVICES 3 FEBRUARY 2009
DAVID SHORE, CFA, MBA 416.860.6784
WEB 2.O WEEKLY david.shore@researchcapital.com
Arun Thomas (Associate) 416.860.7666
VIDEO SITES LEAD BUSIEST FINANCING MONTH SINCE APRIL 2008
S UMM AR Y
W e have identified 80 public companies for our Web 2.0 universe with a combined market cap of almost $25 billion.
These include a wide variety of companies, including MMOG (Massive Multi-Player Online Gaming) companies, social
networking software companies, media sharing companies, and social lending companies. The average market cap for
the group is over $300 million, with average trailing revenue of $100 million. The companies are also highly profitable
with an average EBITDA margin of 17.6%. On a valuation basis, the overall average is 4.0x trailing revenue and 9.4x
trailing EBITDA. Seventeen of the companies have more than 500 employees.
CA P IT AL M AR K ET A CT I V IT Y
After 18 financings in December totalling $122.1 million (average $6.8 million), January has been the busiest month
since April 2008, with 29 financings totalling $199.5 million (average $6.9 million). The largest financing in the last
three months was of HuffingtonPost for $25.0 million in November (Figure 2). Ten companies raised more than $10
million each in January – with AdMob the largest at $12.5 million.
Financing by Sector - January 2009
60.0
50.0
40.0
(US$m)
30.0
51.7
20.0 38.5
10.0 20.0
12.0 12.0 11.5 11.4 11.0 10.0
6.5 6.2 5.0
2.5 1.2
0.0
Crowdsourced Content
Ad Network
Social Networks
Analytics
Travel
Video
Infrastructure
Gaming
Micromedia
Blog
RSS
Comment/Reputation
Wiki
Virtual World
# companies 7 4 2 1 2 2 1 2 1 1 3 1 1 1
IN DU ST R Y N E W S
This section discusses corporate activity such as partnerships, new product launches, and financial results.
V AL U AT I O N
This section provides an overview of valuation metrics for the 80 public W eb 2.0 companies we have identified thus
far. W e calculate TEV/Revenue, TEV/EBITDA, and P/E multiples for the companies in our universe. We also compare
multiples by country and exchange.
This report has been created b y Anal ysts that are emplo yed b y Research Capital Corporation, a Canadian Investment Dealer.
w w w . r e s e a rc h c a p i t a l . c o m
T o ro n t o 4 1 6 . 8 6 0 . 7 6 0 0 Montreal 514.399.1500 Vancouver 604.662.1800 Calgary 403.265.7400 Regina 306.566.7550
2. Page 2
THE WEB 2.0 UNIVERSE
80 public Web 2.0 companies identified: W e have identified 80 public companies for our W eb 2.0 universe with a
combined market cap of almost $25 billion. These include a wide variety of companies, including MMOG (Massive Multi-
Player Online Gaming) companies, social networking software companies, media sharing companies, and social lending
companies. See below for a summary of the full universe (Figure 1). Note that we have not included the large technology
and media companies such as Google, Yahoo, Disney, and Sony in our universe as they would skew the results due to
their immense size relative to the rest of the group. The average market cap for the group is over $300 million, with
average trailing revenue of $100 million. The companies are also highly profitable with an average EBITDA margin of
17.6%. On a valuation basis, the overall average is 4.0x trailing revenue and 9.4x trailing EBITDA. Seventeen of the
companies have more than 500 employees.
Comparable Company Analys is > Web 2.0
S ummary
US D LTM
Trading Current US D Market Total US D LTM Total TE V/LTM TEV/LTM
Company Name LTM as of Ticker E xc hange Currency HQ P rice Cap ($m) Rev ($m) EB ITDA ($m) E BITDA % Revenue EBITDA Employees Website
Accelerize N ew Media, Inc. 9/30/2008 AC LZ OTCB B U SD United States 0.35 9.4 3. 2 (4.7) NM 4. 3x - 20 www. accelerizenewmedia.com
Actoz Soft Co., Ltd. 9/30/2008 A052790 K OSE KRW South K orea 11,550.00 73.3 52.6 9.6 18. 3% 0. 9x 5.0x NA www. actoz.com
AQ Interactive, Inc. 9/30/2008 3838 TSE J PY J apan 39,000.00 23.6 61.4 4.9 8.0% - - NA www. aqi.co.jp
Associated Media Holdings Inc. 6/30/2007 ASMH OTCP K U SD United States 0.01 0.2 0. 1 (2.3) NM 10.2x - 3 www.macgregorenergy. com
BoomJ Inc 9/30/2008 BOMJ OTCB B U SD United States 0.90 36.8 1. 1 (7.7) NM 36.9x - 25 www.boomj. com
Bright Things plc 9/30/2008 AIM:B GT AIM GBP United K ingdom 0.02 3.1 0. 2 (1.6) NM 13.0x - 9 www. brightthings.com
BroadW ebAsia Inc. 9/30/2008 B W BA OTCP K U SD United States 1.01 85.7 0. 0 (4.6) NM - - 46 www. broadwebasia.com
CDC Corp. 9/30/2008 CHIN.A NasdaqGS U SD H ong Kong 0.75 80.9 428.1 18.8 4.4% 0. 3x 7.3x 3,125 www.cdccorpora tion.net
China G ateway Corporation 9/30/2008 CG WY OTCB B U SD United States 0.00 0.0 6. 7 (6.6) -98.9% 0. 0x - 37 -
Chinese G amer International 9/30/2008 G TSM:3083 G TSM T WD Ta iwan 90.30 227.5 38.1 18.0 47. 1% 4. 5x 9.5x NA www.chinesegamer. net
CornerW orld Corporation 10/31/2008 CW R L OTCB B U SD United States 0.41 19.3 0. 6 3.1 506.8% 33.7x 6.7x NA www. cornerworld.com
DADA SpA 9/30/2008 CM:DA CM E UR Ita ly 5.63 116.9 217.1 34.7 16. 0% 0. 7x 4.6x 574 da da.dada. net
Digita lFX International, Inc. 9/30/2008 DXN AME X U SD United States 0.12 3.0 16.9 (4.5) -26.4% 0. 3x - 68 www. digitalfx.com
Digita lP ost Interactive, Inc. 9/30/2008 DG LP OTCB B U SD United States 0.02 1.2 0. 4 (3.3) NM 5. 3x - 11 www. digitalpostinteractive.com
Digita lTown, Inc. 11/30/2008 DG TW OTCB B U SD United States 1.50 40.7 NM (2.5) NM - - 3 www.enetpc.com
Dolphin Digital Media , Inc. NA DP DM OTCB B U SD United States 0.70 34.1 NA NM NM - - 6 www.dolphindigitalmedia. com
Eolith Co. Ltd. 12/31/2007 A041060 K OSE KRW South K orea 530.00 17.8 18.0 (0.0) -0. 3% 1. 0x - NA www.eolith. co. kr
Extensions, Inc. 9/30/2008 EXTI OTCP K U SD United States 0.20 18.9 NM NM NM - - 2 www.ext.com
F inancia l Media Group, Inc. 11/30/2008 F NGP OTCB B U SD United States 0.02 1.3 6. 8 1.2 18. 3% 0. 1x 0.4x 22 www.wa llst.net
F luid Music Canada , Inc. 9/30/2008 TS X:F MN TSX C AD United States 0.40 16.9 4. 2 (8.6) NM - - 29 www.fluidmedia networks. com
F rogster Interactive P ictures AG 6/30/2008 FR G XT R A E UR G ermany 4.63 13.9 5. 2 (3.1) -60.6% 2. 6x - NA www.frogster-ip.de/en/index.php
Ga mania Digital E ntertainment Co., L td. 9/30/2008 6180 G TSM T WD Ta iwan 20.80 93.6 110.2 18.6 16. 9% 0. 6x 3.7x NA www.ga mania.co.kr
Ga meOn Co L td. 9/30/2008 3812 TSE J PY J apan 119,500.00 132.5 83.0 21.0 25. 4% 0. 8x 3.2x NA www.gameon.co.jp
GeoS entric Oyj 9/30/2008 G E O1V HL SE E UR F inland 0.03 34.4 5. 3 ( 12.1) NM 5. 6x - 92 www.benefon.com
Giant Interactive G roup, Inc. 9/30/2008 GA NYS E U SD China 5.80 1,378.7 244.7 155. 3 63. 5% - - 1,016 www.ga-me. com
GigaMedia L td. 9/30/2008 GIGM NasdaqGS U SD Ta iwan 6.52 352.3 200.5 48.0 23. 9% 1. 4x 6.0x 975 www.gigamedia.com.tw
GoFish Corporation 9/30/2008 G OF H OTCB B U SD United States 0.20 5.1 6. 3 ( 11.0) NM 2. 5x - 41 www.gofish.com
Gravity Co., Ltd 9/30/2008 GRVY Nasda qG M U SD South K orea 0.72 20.0 35.2 6.8 19. 2% - - 636 www.gravity. co.kr
Gree, Inc. NA TSE :3632 TSE J PY J apan 5,930.00 0.0 NA NM NM - - NA www.gree. co.jp
GungHo Online Entertainment, Inc. 9/30/2008 3765 OS E J PY J apan 106,600.00 135.7 113.7 16.7 14. 7% 1. 0x 6.5x NA www. gungho.co. jp/english/
HanbitS oft, Inc. 9/30/2008 A047080 K OSE KRW South K orea 3,040.00 47.9 49.9 ( 12.8) -25.6% 0. 6x - NA www.hanbitsoft.co. kr
IAS E nergy, Inc. 10/31/2008 IAS C.A OTCB B U SD Canada 0.03 1.8 0. 0 (0.9) NM - - NA www. ia senergy.com
IdeaE dge, Inc. 9/30/2008 OTCB B :IDAE OTCB B U SD United States 0.42 17.7 0. 0 (3.5) NM - - NA www.ideaedge.com
J umbuck Entertainment P ty Ltd. 6/30/2008 AS X:J MB AS X AUD Australia 0.48 15.0 9. 9 4.6 46. 0% 1. 1x 2.4x 72 www.jumbuck. com
J umpTV Inc. 6/30/2008 TSX :J TV TSX C AD Canada 0.44 40.3 11.5 (1.8) -15.3% 4. 3x - NA www.jumptv.com
Ka boose Inc. 9/30/2008 TSX :K AB TSX C AD Canada 0.43 48.6 59.8 4.6 7.6% 0. 9x 12.2x NA www.kaboose.com
Kingsoft Co. Ltd. 9/30/2008 3888 SE HK H KD China 2.66 368.2 106.5 36.0 33. 8% 2. 6x 7.8x 1,660 www. kingsoft.com
Lingo Media Corpora tion 9/30/2008 TSX V: LM TS XV C AD Canada 1.05 10.9 3. 3 (1.4) -42.5% 3. 5x - NA www.lingomedia .com
LiveWorld Inc. 9/30/2008 LV W D OTCP K U SD United States 0.06 1.9 11.7 (1.2) -10.1% - - 73 www.liveworld. com
LookS mart, Ltd. 9/30/2008 LOOK Nasda qG M U SD United States 1.35 23.0 69.5 (2.6) -3. 7% - - 93 www. looksmart.com
Magnitude Information S ystems Inc. 9/30/2008 MAGY OTCB B U SD United States 0.03 11.3 0. 1 (3.2) NM - - 13 www.ma gnitude. com
Mixi, Inc. 9/30/2008 2121 TSE J PY J apan 534,000.00 909.7 125.3 49.4 39. 4% 6. 4x 16.1x NA www.mixi.co.jp
Moggle, Inc 12/31/2008 MMOG OTCB B U SD United States 2.00 70.6 NM (1.1) NM - - 3 www. playmoggle.com
National L ampoon Inc. 7/31/2008 NLN AME X U SD United States 0.73 6.9 7. 4 (1.6) -21.1% 1. 6x - 24 www.nationallampoon.com
NEOW IZ G ames Corpora tion 12/31/2007 A095660 K OSE KRW South K orea 23,600.00 163.0 129.7 34.9 26. 9% 1. 2x 4.4x NA www.neowiz.com/kor/
NetDra gon WebS oft, Inc. 9/30/2008 777 SE HK H KD China 2.75 187.4 95.1 46.2 48. 6% 0. 1x 0.2x 1,482 www. nd. com.cn
Netea se.com Inc. 9/30/2008 NTE S NasdaqGS U SD China 18.73 2,304.8 421.7 273. 8 64. 9% - - 2,413 corp.163.com
NeXplore Corporation 9/30/2007 NXP C OTCP K U SD United States 0.55 30.7 NM (4.9) NM - - 19 www.nexplore.com
Ngi G roup Inc. 9/30/2008 2497 TSE J PY J apan 34,300.00 47.2 101.8 34.1 33. 5% - - NA www.neta ge.co.jp/en/index. html
Northgate Technologies L imited 9/30/2008 590057 B SE INR India 38.90 27.9 137.0 24.4 17. 8% 0. 2x 1.1x 286 www.northgatetech.com
Open Text Corp. 12/31/2008 OTEX NasdaqGS U SD Canada 34.74 1,802.6 769.3 195. 4 25. 4% 2. 5x 9.9x 2,915 www.opentext.com
Openwa ve S ystems Inc. 12/31/2008 OPW V NasdaqGS U SD United States 0.81 66.9 199.6 ( 10.4) -5. 2% - - 657 www.openwa ve.com
Perfect W orld Co., Ltd. 9/30/2008 P WR D NasdaqGS U SD China 13.91 793.5 186.5 99.7 53. 5% - - 1,401 www.wanmei.com/en/index.htm
PhotoChannel Networks Inc. 9/30/2008 TS XV : PN TS XV C AD Canada 1.72 46.4 13.7 (2.4) -17.7% 3. 3x - NA www.photocha nnel.com
Quepasa Corp. 9/30/2008 QP SA NasdaqCM U SD United States 1.87 23.7 0. 1 ( 11.8) NM - - 63 www.quepasa . com
Shanda Interactive Entertainment L td. 9/30/2008 SNDA NasdaqGS U SD China 29.22 2,027.4 477.0 227. 8 47. 8% - - 2,564 www.snda .com
Shutterfly, Inc. 9/30/2008 S FLY NasdaqGS U SD United States 6.82 171.0 203.3 25.7 12. 6% 0. 6x 5.1x 512 www.shutterfly.com
SK Communications Co. , Ltd. 12/31/2007 A066270 K OSE KRW South K orea 7,780.00 230.2 149.2 14.0 9.4% 1. 5x 16.4x NA -
SNAP Interactive, Inc. 9/30/2008 S TV I OTCB B U SD United States 1.00 10.7 2. 3 0.2 10. 1% 4. 2x 41.2x 5 www.snap-interactive.com
SNM G lobal Holdings 9/30/2008 S NMN OTCP K U SD United States 0.00 0.0 2. 0 (0.7) -34.8% 1. 1x - 33 www. snmglobalholdings.com
Spark Networks, Inc. 9/30/2008 LOV AME X U SD United States 2.41 51.7 60.1 11.7 19. 5% 0. 8x 4.1x 176 www.spark.net
SpectrumDNA, Inc. 9/30/2008 S P XA OTCB B U SD United States 0.10 4.9 0. 1 (2.7) NM - - 7 -
Tencent Holdings Ltd. 9/30/2008 700 SE HK H KD China 47.05 10, 894.1 901.8 446. 8 49. 5% 13.0x 26.3x 6,039 www. tencent.com. hk /index_e.shtml
The P arent Company 8/2/2008 KIDS .Q OTCP K U SD United States 0.03 0.7 112.0 ( 13.5) -12.0% 0. 2x - 347 www. theparentcompany.com
The9 Limited 9/30/2008 NCTY NasdaqGS U SD China 14.90 411.4 252.0 94.9 37. 7% - - 1,361 www.the9.com
TheStreet.com, Inc. 9/30/2008 T SCM Nasda qG M U SD United States 2.87 87.5 75.2 12.2 16. 2% 0. 1x 0.8x 349 www.thestreet. com
Tree. Com, Inc. 9/30/2008 TR E E Nasda qG M U SD United States 4.00 37.5 231.2 ( 39.6) -17.1% 0. 1x - 1,000 www.lendingtree. com
Uniserve Communications Corp. 11/30/2008 TS XV :US S TS XV C AD Canada 0.10 2.0 24.1 0.1 0.4% 0. 2x 40.7x NA www.uniserve. com
United Online Inc. 9/30/2008 UNTD NasdaqGS U SD United States 6.00 491.8 538.7 130. 6 24. 2% 1. 6x 6.5x 928 www.unitedonline.net
UOMO Media, Inc 10/31/2008 UOMO OTCB B U SD Canada 0.08 6.8 0. 5 (0.4) -91.6% 15.1x - NA www.uomolife.com
VOIS , Inc. 9/30/2008 VOIS OTCB B U SD United States 0.75 5.4 0. 0 (4.0) NM - - 4 www.vois. com
W ebzen Inc. 9/30/2008 WZE N Nasda qG M U SD South K orea 1.45 17.2 20.3 (6.0) -29.5% - - 338 www.webzen.co. kr
W izza rd S oftwa re Corporation 9/30/2008 W ZE AME X U SD United States 0.70 31.6 6. 2 (6.5) NM 5. 1x - 110 www.wizzardsoftware.com
W oozyF ly, Inc. 9/30/2008 W ZYF OTCB B U SD United States 0.15 2.6 0. 0 NM NM - - 14 www.woozyfly. com
W orlds.com Inc. 9/30/2008 W DDD OTCB B U SD United States 0.22 11.5 0. 1 NM NM - - 1 www.worlds. com
W yndstorm Corporation NA W YND OTCB B U SD United States 0.13 2.3 NA NM NM - - NA www.wyndstorm.com
XING AG 9/30/2008 O1B C XT R A E UR G ermany 28.21 188.0 40.1 15.6 38. 8% 3. 3x 8.6x 161 www.xing. com
YedangOnline Corp. 12/31/2007 A052770 K OSE KRW South K orea 6,830.00 76.9 49.3 11.0 22. 4% 1. 5x 6.9x NA www. yeda ngonline. com/indexhome. asp
Ynk K orea Inc. 12/31/2007 A023770 K OSE KRW South K orea 3,805.00 6.7 14.0 (1.1) -7. 6% 0. 5x - NA www.ynk.net
ZipLocal Inc. 9/30/2008 TSX V:ZIP TS XV C AD Canada 0.02 1.3 2. 8 (3.9) NM 0. 7x - NA www. ziplocal.com
High 10, 894.1 901.8 446.8 506.8% 36.9x 41.2x 6,039
Low 0.0 0.0 -39.6 -98.9% 0. 0x 0.2x 1
Average 310.2 100.4 26.2 17.6% 4.0x 9.4x 601
Figure 1. Web 2.0 Universe Summary
Source. Capital IQ
3. Page 3
C A P I T A L M A R K E T S A C T I V I T Y (M & A A N D F I N A N C I N G )
Video sites lead busiest month since April 2008: After 18 financings in December totalling $122.1 million (average $6.8
million), January has been the busiest month since April 2008, with 29 financings totalling $199.5 million (average $6.9
million). The largest financing in the last three months was of HuffingtonPost for $25.0 million in November (Figure 2). Ten
companies raised more than $10 million each in January – with AdMob the largest at $12.5 million. For additional details,
see Figure 27 (at end of note).
Financing - Last Three Months
30.0
25.0
20.0
Jan-09
(US$m)
15.0 Dec-08
Nov-08
10.0
5.0
0.0
Motionbox
Xobni
Overlay.TV
Rockyou
PlaySpan
AdMob
NewsGator
Go Internet Media
FooMojo
One True Media
Social Median
Kewego
SocialMedia
Playdo
Casual Collective
CoveritLive
VirtuOz
IMVU
SundaySky
Play Hard Sports
InsideView
Gbox
Multiply
Tripwolf
StockTwits
Meez
GoFish
NetShelter
Nurien
Yodle
Taptu
Scribd
JibJab
Superfish
Snapmylife
Tagged
Jackbe
Tumblr
DotBlu
Hubdub
Snooth
Identi.ca
HuffingtonPost
Angie's List
KickApps
Aster Data Systems
RatePoint
AboutUs
ChakPak
Sportsblogs
E-Global Sports
Clickpass
Blue Kai
Geni
DECA
Machinima.com
Pulse Entertainment
Worlds.com Inc.
Figure 2. Financings, Last Three Months
Source. Company reports
Video sites lead: The activity was led by seven transactions for video-related companies, raising over $50 million in the
month (Figure 3). Four ad networks raised almost $40 million between them.
Financing by Sector - January 2009
60.0
50.0
40.0
(US$m)
30.0
51.7
20.0 38.5
20.0
10.0
12.0 12.0 11.5 11.4 11.0 10.0
6.5 6.2 5.0
2.5 1.2
0.0
Travel
Video
Infrastructure
Micromedia
Blog
Ad Network
Social Networks
Analytics
Crowdsourced Content
RSS
Gaming
Virtual World
Comment/Reputation
Wiki
# companies 7 4 2 1 2 2 1 2 1 1 3 1 1 1
4. Page 4
Figure 3. Financings, by Sector, January 2009
Source. Company reports
But January activity doesn’t offset weak 2H/08: However, on a trailing 12-month basis, financings are down for the third
month in the last four, with average round sizes decreasing slightly as of January (Figure 4).
LTM Financing
4,000.0 20.0
18.0
3,500.0
16.0
3,000.0
14.0
2,500.0
12.0
(US$m)
(US$m)
2,000.0 10.0
8.0
1,500.0
6.0
1,000.0
4.0
500.0
2.0
0.0 0.0
May-06
May-07
May-08
Nov-05
Mar-06
Nov-06
Mar-07
Nov-07
Mar-08
Nov-08
Jul-05
Sep-05
Jan-06
Jul-06
Sep-06
Jan-07
Jul-07
Sep-07
Jan-08
Jul-08
Sep-08
Jan-09
Total Average
Figure 4. Financings, Last 12 Months
Source. Company reports
Cumulative total passes $5.2 billion: Overall, on a cumulative basis, W eb 2.0 financings have totalled over $5.2 billion,
with the majority of the financing coming in late 2007 and the first three quarters of 2008 (Figure 5).
Web 2.0 Financing (cumulative)
1,400.0 6,000.0
1,303.0
1,200.0
5,000.0
1,000.0 944.7
4,000.0
800.0
(US$m)
(US$m)
701.7
3,000.0
600.0
524.9
2,000.0
400.0 338.5
297.0
199.5 1,000.0
200.0 145.7
124.1 116.3 97.0
87.2 73.4
37.5 33.5 18.2 41.9 49.1 29.4
35.5 28.8 20.1
0.0 0.0
Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1
2003 2004 2005 2006 2007 2008 2009
Figure 5. Financing, Cumulative
Source. Company reports
5. Page 5
U.S. remains dominant: U.S. companies continue to dominate capital market activity – with almost 73% of
financings/M&A involving U.S. companies (based on dollars) (Figure 6). Canadian companies generated under 1% of
capital market activity based on dollar volume (Figure 6). Based on number of transactions, the U.S. leads with 73% of
deals, while Canada is third in number of financings at 5.5% (Figure 7).
Financing/M&A by Country - LTM (#)Canada
Financing/M&A by Country - LTM ($) 5.5%
UK
UK
5.9%
13.2%
Israel
3.1%
France
China 2.3%
7.9%
Russia ROW
1.7% Israel 10.2%
0.8%
Canada
0.7%
Denmark
0.7%
ROW
2.4%
USA
USA
73.0%
72.6%
Figures 6 & 7. Financing/M&A, by Country (LTM, $, #)
Source. Company reports
More early-stage funding (by count): Almost half of financings in the last 12 months are for early-stage companies
(Angel/Seed or Series A) (Figure 8). Series B rounds are 30.1% of the total, with later-stage (Series D, E and PIPE) deals
accounting for just 7.1%.
Financing by Type - LTM
Series B
Series C
30.1%
13.0%
Series D
4.6%
Angel/Seed
9.2%
Debt financing
2.9%
PIPE
Series A 2.1%
38.1%
Figure 8. Financing, by Type (LTM, $)
Source. Company reports
“D” series are largest equity rounds (by dollar): In the last 12 months, there have been 11 “D” series rounds, averaging
over $25 million per financing (Figure 9). Note that we have excluded the $430 million Series C financing of Oak Pacific
Interactive as it skews the results substantially.
6. Page 6
Average financing round size - LTM
40.0
35.0
30.0
25.0
(US$m)
20.0
38.1
15.0
26.2
10.0
18.2
11.3
5.0 10.0
8.8
6.4
3.3
0.0
Angel/Seed Debt financing PIPE Series A Series B Series C Series D Series E
# rounds
22 7 5 91 72 31 11 1
Figure 9. Average Size per Round
Source. Company reports
C A P I T A L M A R K E T S A C T I V I T Y (P R I C E P E R F O R M A N C E )
Price Performance: Our W eb 2.0 index (market-cap weighted) has closely tracked the performance of the NASDAQ
composite index, although it has outperformed the index since late October 2008 (Figure 10).
Web 2.0 Index Price Performance
140
120
100
80
60
40
20
0
2/4/2008
2/18/2008
3/3/2008
3/17/2008
3/31/2008
4/14/2008
4/28/2008
5/12/2008
5/26/2008
6/9/2008
6/23/2008
7/7/2008
7/21/2008
8/4/2008
8/18/2008
9/1/2008
9/15/2008
9/29/2008
10/13/2008
10/27/2008
11/10/2008
11/24/2008
12/8/2008
12/22/2008
1/5/2009
1/19/2009
2/2/2009
NASDAQ COMP Web 2.0 (Market Cap Weighted)
Figure 10. Web 2.0 Price Performance
Source. Capital IQ
7. Page 7
Moggle leads; DigitalTown continues weak performance: DigitalTown (DGTW -OTCBB) again had the worst
performance in the group (for stocks with prices greater than $1) (Figure 11), falling 34.8% on the week. Moggle (MMOG-
OTCBB) increased the most, +33.3%.
1 Week Pric e P erformanc e
Moggle, Inc 33. 3%
AQ Interactive, Inc. 30. 9%
13. 3%
S hutterfly, Inc.
S K C ommunications C o. , L td. 10. 4%
10. 1%
Mixi, Inc.
Actoz S oft C o. , L td. 9. 0%
G ree, Inc. 8. 4%
8. 2%
G ungHo Online E ntertainment, Inc.
O pen T ext C orp. 7. 2%
7. 1%
L ingo Media C orpora tion
T encent Holdings L td. 6. 3%
Neteas e. com Inc. 5. 7%
4. 9%
S ha nda Interactive E ntertainment L td.
NetDragon W ebS oft, Inc. 3. 8%
E olith C o. L td. 2. 9%
NE O W IZ G ames C orpora tion 2. 6%
L ookS ma rt, L td. 2. 3%
1. 4%
W ebzen Inc.
K ings oft C o. L td. 0. 0%
C hines e G a mer International 0. 0%
S park Networks , Inc. -0. 8%
T heS treet. com, Inc. -1. 0%
-1. 1%
Q uepas a C orp.
HanbitS oft, Inc. -1. 1%
P hotoC hannel Networks Inc. -1. 1%
-1. 2%
G iga Media L td.
U nited O nline Inc. -1. 5%
-2. 7%
G iant Interactive G roup, Inc.
XING AG -2. 7%
G ameO n C o L td. -2. 8%
-3. 5%
G amania Digital E ntertainment C o. , L td.
Y edangO nline C orp. -3. 7%
Y nk K orea Inc. -3. 7%
T he9 L imited -5. 8%
F rogs ter Intera ctive P ictures AG -6. 5%
-7. 2%
T ree. C om, Inc.
Northgate T echnologies L imited -8. 5%
P erfect W orld C o. , L td. -10. 0%
DADA S pA -12. 4%
Ngi G roup Inc. -23. 1%
-34. 8%
DigitalT own, Inc.
-40. 0% -30. 0% -20. 0% -10. 0% 0. 0% 10. 0% 20. 0% 30. 0% 40. 0%
Figure 11. 1-Week Price Performance
Source. Capital IQ
INDUSTRY NEWS (PARTNERSHIPS, FINANCIAL RESULTS, NEW PRODUCTS)
DigitalTown, Inc. Names Jan K. Andersen as CEO: The board of directors of DigitalTown, Inc. named Jan K. Andersen
to the new position of Chief Executive Officer. Richard A. Pomije will continue as Chairman of the Corporation. Andersen
most recently served as President and CEO of Bellacor.com, which he led from its inception in 2000 to become a leading
e-tailer in the home furnishings category. W hile at Bellacor.com, he grew revenues by more than 50% annually and
brought the company to profitability within a year of its initial launch. He was also an early pioneer of several e-tail
strategies now commonplace.
Openwave Systems Inc. Enters into $40 Million Secured Revolving Credit Arrangement with Silicon Valley Bank:
Openwave Systems Inc. and Silicon Valley Bank entered into a $40 million secured revolving credit arrangement to
improve liquidity and working capital for the Company. The Company may borrow, repay and reborrow under the line of
credit facility at any time. As of January 27, 2009, the line of credit facility bears interest at 4% per annum. The
Company's line of credit is collateralized by substantially all of the Company's assets and requires the Company to comply
with customary affirmative and negative covenants principally relating to use and disposition of assets, the satisfaction of
a liquidity coverage ratio test and minimum EBITDA requirements. In addition, the credit arrangement contains customary
events of default. Upon the occurrence of an uncured event of default, among other things, the Bank may declare that all
amounts owing under the credit arrangement are due and payable. The line of credit and facility expire on January 22,
2011.
Tree.Com Amends Line of Credit Agreement with Countryw ide Bank, FSB; Names Patrick L. McCrory as Director:
On January 23, 2009, the Tree.Com, Inc., through its subsidiary Home Loan Center, Inc., mutually agreed with
Countrywide Bank, FSB to extend the term of its $50 million committed line of credit to February 23, 2009 and to revise
8. Page 8
the interest rate to 30-day LIBOR plus 225 basis points. In addition to certain amendments to the financial covenants, the
parties also mutually agreed to reduce the uncommitted line of credit from $150 million to $50 million. Both parties
continue to work on a one-year extension of the committed facility. On January 26, 2009, the Company's Board of
Directors appointed Patrick L. McCrory as a director of the Company. The Board of Directors determined that Mr. McCrory
qualifies as an 'independent' director, and appointed him to serve on the Company's Compensation and Nominating
Committees.
VALUATION
MMOG companies lead market cap charts: Just five (same as last week) companies in our W eb 2.0 universe top US$1
billion in market capitalization (Figure 12). In addition, 60 of the 80 (same as last week) companies have market caps
under US$100 million, with 22 (24 last week) under $10 million. Online gaming companies dominate the top of the list with
five of the top seven by market cap.
Market C ap (US D m)
T encent H oldings L td.
Netea s e.com Inc. 2304. 8
2027. 4
S handa Interactive E nterta inment
O pen T ext C orp. 1802. 6
G ia nt Intera ctive G roup, Inc. 1378. 7
Mixi, Inc. 909. 7
P erfect W orld C o. , L td. 793. 5
United O nline Inc. 491. 8
T he9 L imited 411.4
K ings oft C o. L td. 368. 2
G iga Media L td. 352. 3
230. 2
S K C ommunica tions C o. , L td.
C hines e G amer Interna tiona l 227. 5
XING AG 188. 0
NetDra gon W ebS oft, Inc. 187.4
S hutterfly, Inc. 171.0
NE O W IZ G ames C orpora tion 163. 0
G ungHo O nline E nterta inment, Inc. 135. 7
G a meO n C o L td. 132. 5
DADA S pA 116. 9
G a ma nia Digita l E ntertainment C o. , 93. 6
T heS treet. com, Inc. 87. 5
B roadW ebAs ia Inc. 85. 7
C DC C orp. 80. 9
76. 9
Y edangOnline C orp.
Actoz S oft C o. , L td. 73. 3
Moggle, Inc 70. 6
O penwave S ys tems Inc. 66. 9
S park Networks , Inc. 51. 7
K aboos e Inc. 48. 6
Ha nbitS oft, Inc. 47. 9
Ngi G roup Inc. 47. 2
P hotoC ha nnel Networks Inc. 46. 4
40. 7
DigitalT own, Inc.
J umpT V Inc. 40. 3
T ree.C om, Inc. 37.5
B oomJ Inc 36. 8
G eoS entric Oyj 34. 4
Dolphin Digita l Media , Inc. 34. 1
W izza rd S oftwa re C orpora tion 31. 6
NeXplore C orpora tion 30. 7
Northga te T echnologies L imited 27. 9
Q uepa s a C orp. 23. 7
AQ Interactive, Inc. 23. 6
L ookS mart, L td. 23. 0
G ra vity C o., L td 20. 0
C ornerW orld C orpora tion 19. 3
E xtens ions , Inc. 18. 9
E olith C o. L td. 17. 8
IdeaE dge, Inc. 17. 7
W ebzen Inc. 17. 2
16. 9
F luid Mus ic C a na da , Inc.
J umbuck E ntertainment P ty L td. 15. 0
F rogs ter Intera ctive P ictures AG 13. 9
W orlds .com Inc. 11. 5
Ma gnitude Informa tion S ys tems Inc. 11. 3
Lingo Media C orpora tion 10.9
S NAP Interactive, Inc. 10.7
Accelerize New Media , Inc. 9. 4
Na tiona l La mpoon Inc. 6.9
6.8
UO MO Media , Inc
Y nk K orea Inc. 6.7
V OIS , Inc. 5. 4
G oF is h C orpora tion 5. 1
4. 9
S pectrumDNA, Inc.
B right T hings plc 3. 1
Digita lF X Internationa l, Inc. 3. 0
W oozyF ly, Inc. 2. 6
W ynds torm C orpora tion 2. 3
U nis erve C ommunications C orp. 2.0
LiveW orld Inc. 1.9
IAS E nergy, Inc. 1.8
F inancia l Media G roup, Inc. 1.3
1. 3
ZipLoca l Inc.
DigitalP os t Interactive, Inc. 1. 2
T he P arent C ompany 0. 7
As s ocia ted Media Holdings Inc. 0. 2
C hina G a tewa y C orpora tion 0. 0
S NM G loba l Holdings 0. 0
G ree, Inc. 0. 0
0 500 1, 000 1, 500 2, 000 2, 500 3, 000 3, 500 4, 000
Figure 12. Market Cap Ranking
Source. Capital IQ
TEV/Revenue (LTM) averages 4.0x: The overall average TEV/Revenue (LTM) multiple for our group is 4.0x (Figure 13).
However, this is skewed by CornerW orld (CW RL-OTCBB) at 33.7x and BoomJ at 36.9x (BOMJ-OTCBB). Excluding those
companies, the average is 2.7x. Note that we exclude multiples greater than 50x. Twenty-six of the companies have
multiples under 1.5x.